Four bank managers and a businessman have been remanded in custody as police investigate what authorities describe as a significant foreign exchange fraud involving transfers of around USD 1 billion without corresponding goods imports.
The Colombo Magistrate's Court has extended the remand of four bank managers and a businessman until September 3 in connection with an alleged foreign exchange scam. The suspects were taken into custody by the Police Financial Crimes Investigation Division following an inquiry into transactions conducted through a money changer operating in Colombo Fort.
According to police, approximately USD 1 billion was transferred overseas without legitimate goods being imported into Sri Lanka to justify the currency transfers. Investigators allege that the primary suspect made regular payments to banking officials to secure their cooperation in processing the transactions. These payments ranged between Rs. 30,000 and Rs. 100,000 per occasion, with at least one official reportedly receiving Rs. 1 million in a single separate transaction.
Authorities have characterized this case as unprecedented, noting it represents the first instance in Sri Lanka where bank managers have been arrested specifically for a foreign exchange-related offence of this magnitude. The investigation has also uncovered evidence of fraudulent transactions spanning hundreds of bank accounts across multiple financial institutions, through which foreign currency was allegedly moved overseas without corresponding import documentation.
The Police Financial Crimes Investigation Division continues its inquiry into the alleged scheme, examining the roles played by the arrested banking officials and identifying additional suspects who may have been involved in facilitating the transactions.
